Real Estate Terminology: Know These 8 Terms Before You Buy or Sell a Home! by Holly Budde
How well do you know real estate terminology? By familiarizing yourself with these common real estate industry terms, you will understand the jargon of the transaction, and hopefully have a pleasurable experience in real estate.
- Pre-approval: Documentation and credit submitted to the lender.
- Offer: A written offer to purchase the home of your choice. Usually written on the state-required contract form. Until accepted and signed by the seller, it is simply your offer.
- Acceptance: The sellers sign and accept your offer. Now you are "under contract" with the sellers to purchase according to the agreed terms.
- Earnest Money: Money paid to secure the consideration of contract.
- Inspection: A home mechanical and structural inspection by a licensed real estate inspector.
- Appraisal: An independent evaluation of the home's value, done by a licensed appraiser.
- Closing costs: Third-party fees required to be paid over and above the down payment (loan, title, inspections fees, to name a few).
- Closing: Signing of the final loan documents and transferring of title to buyer.
These are a few basic terms you will undoubtedly hear during the process. Ask your lender/agent to clarify anything you don't fully understand.